Unemployment Fraud

Holding back any information of your employment or giving false information to the Department of Labor is considered an unemployment insurance fraud. You are always required to provide true reasons of release of employment. You must report if you are working while receiving benefits. You are required to report all types of employment details to the Department of Labour. Infringement to anything mentioned above is likely to attract criminal penalties.

Is receiving overpaid benefits considered a fraud?

Receiving overpaid benefits, you aren’t entitled to, is not considered a fraud unless resulted by your own faults. Depending on your circumstances, you aren’t even entitled to repayment of such overpaid non-fraudulent benefits. But you might receive a notice from the department if you really have to repay. If you’ve received overpaid benefits and you are unsure what to do, then you should consult with our criminal lawyer on Expertsland.

What kind of penalties one is entitled to if charged under unemployment fraud and overpaid benefits?

If charged under unemployment fraud, then you are entitled for a financial penalty up to 30% of the overpayment including false statement disqualification of 5 to 23 weeks.

If you fail to repay your overpaid non-fraudulent benefits, then EDD may deduct the money from future weekly unemployment or state insurance benefits. EDD is also entitled to withhold income tax refunds, lottery winnings, or any other money owed to you by the state.

What are the ways to avoid penalty or criminal proceedings in both the cases?

In most unemployment compensation fraud cases, payment in full is the best and only solution which eliminates chances of prosecution. However, you are required to hire an attorney to negotiate a payment plan with EDD as they don’t negotiate on payment plans directly with you.

Even if convicted, you will only get a criminal record. Your prosecution entirely depends upon the director of the agency who might not have enough grounds to prosecute you in case you have made the payments. If you still have queries on overpayment penalties, then consult it with a lawyer on Expertsland.

Can I report of unemployment fraud myself?

It’s a great idea if you choose to report an unemployment fraud yourself. The chances are you won’t be prosecuted or simply have lenient results in the proceedings. So if you have the money to pay back in full on-the-spot or through repayment plan, it’s always a great deal. However, you must have your attorney with you to avoid misrepresentation of self-reporting as confession to fraud. ‘

Can I work part-time or start a business while receiving benefits?

You can work part-time while receiving benefits, but you will receive partial benefits if you work less than four days in a week. Work on each day or part of the day may result in your benefits rate being reduced. However, it extends the length of time you can receive benefits. You will receive benefits until you receive the maximum benefit amount or your benefit year ends.

You are not entitled to receive any benefit if you are involved in or starting a business. You are considered employed if you are starting a business in partnership or starting a business in corporate arrangement. Time spent to start or in operation is considered employment even if you’ve made no sales or received any profit.

Unemployment fraud can lead to imprisonment in several cases. Hence, it’s important to stay well informed about the laws. However, hiring or consulting with an attorney is expensive too. We encourage you to seek legal advice at Expertsland for quick and cheaper answers. So what are you waiting for? Just ask your legal question HERE.